Mexican peso
Mexico |years= 1863–present |inflation= 4.83% (Bank of Mexico, Feb. 2010 est.) |subunit= 1/100 centavo |symbol= $ or Mex$ |subunit-symbol= ¢ |AKA= varos, morlacos, money, lana, lucas, papiros, marimba, varonil, Sor Juana ($200 pesos note), feria, marmaja, billelle, pachocha, devaluados, billullos, villancicos, benitos, villanos, del águila, bolas, dinero |coins= 5 ¢, ¢, ¢, 20 ¢, 50 ¢, 1 $, 2 $, 5 $, 10 $, 20 $, 50 $, 100 $ |banknotes= 20 $, 50 $, 100 $, 200 $, 500 $, 1000 $ |central bank= Bank of Mexico |printer= Bank of Mexico |mint= ''Casa de Moneda de México'' }} The peso (sign: $'''; ISO code: '''MXN) is the current currency of Mexico. It was the first currency in the world that used the "$" sign as its symbol, which the United States dollar later adopted for its use.http://books.google.com/books?id=4ykDAAAAMBAJ&printsec=frontcover#PPA59,M1 The Mexican peso is the world's 12th most traded currency and by far the most traded currency in Latin America and the third most traded in all of America.Triennial Central Bank Survey (April 2007), Bank for International Settlements. The current ISO 4217 code for the peso is MXN, but before the 1993 revaluation (see below), the code MXP was used. The Mexican peso is divided into 100 centavos, which are symbolized with a "¢". Its name was originally used to reference either pesos oro, meaning "gold weights" or pesos plata, meaning "silver weights". The literal English translation for the word "peso" is "weight". As of April 5, 2011, the exchange rate of the peso equalled 16.81 per Euro and 11.82 per US dollar. History First peso coin from 1894.]] The peso was originally a name given to the eight-real coins issued in Mexico by Spain. These so-called Spanish dollars or pieces-of-eight underwent wide circulation in the Americas and Asia during the reign of the Spanish Empire until the early 19th century. After Mexico's independence was gained in 1821, the new government continued the Spanish monetary system of 16 silver reales equalling 1 gold escudo, with the peso of eight reals being the largest denomination. Paper money was also issued, denominated in pesos. During 1863, the first issue of coins denominated in centavos, worth one hundreth of a peso, occured. This was followed in 1866 by coins with a denomination of "one peso". Coins denominated in reales remained circulated until 1897. In 1905, the gold content of the peso was reduced by 49.3%, but the silver content remained mainly unchanged (auxiliary coins were debased). However, from 1918 onward, the weight and fineness of all silver coins dropped until 1977, when the last silver 100 peso coins were minted. Second peso :For more information, see 1994 economic crisis in Mexico Throughout a majority of the 20th century, the Mexican peso has remained as one of the most stable currencies in Latin America, due to the fact that the currency has not experienced periods of hyperinflation, common to other countries in its region. However, after the energy crisis of 1979, Mexico defaulted on external debt in 1982, as a result of which, Mexico suffered a severe case of capital flight and had experienced several years of inflation and devaluation until the government strategy called the Pacto de estabilidad y crecimiento económico, PECE ("Stability and Economic Growth Pact") was adopted under leadership by President Carlos Salinas de Gortari. On January 1, 1993, the Bank of Mexico introduced a new currency, the nuevo peso ("new peso"), given the ISO 4217 code "MXN", and written as "N$" followed a numerical amount. One new peso was at that point equal to 1000 obsolete pesos (MXP). Exactly three years later, on January 1, 1996, the modifier nuevo was dropped from the name, and coins and banknotes, which were still identical in every respect to the 1993 issue, with the exception of not having the word nuevo on it, were then circulated. The ISO 4217 code, however, still remained unchanged, still being "MXN". Due to the stability of Mexico's economy and growth in foreign investment, the Mexican peso is one of the 15 most traded currency units in years; since the late 1990s the peso has been traded at about 9 to 15 pesos per United States dollar. Foreign use The Spanish dollar or Mexican peso was widely used by the United States during its early times as a country. By a decree from July 6, 1785, the value of the United States dollar was set to be approximately equal to the Spanish dollar, both of which were based off the weight of silver coinage. The first United States dollar coins were not issued until April 2, 1792, and the peso was therefore used, being officially recognized along with other foreign coins, until February 21, 1857. In Canada, the peso remained legal tender, along with other foreign silver coins, until the nation began circulating its own coins in 1854.See here The Mexican peso was also the model for the Straits dollar, the Hong Kong dollar, the Japanese yen, and the Chinese Renminbi.See here The term, Chinese yuan, refers to the round Spanish dollars, Mexican pesos, and other 8 real coins which were used in China during the 19th century. Coinage 19th century .]] The first coins of the Mexican peso were minted in 1863 with a value of one centavo. Maximilian I, ruler of the Second Mexican Empire from 1864 to 1867, issued the first coins with the word "peso" on them. Maximilian's portrait was displayed on the obverse of the coins with a legend saying "Maximiliano Emperador", while the reverse displayed the coat of arms of the empire as well as the legends "Imperio Mexicano", "1 peso", and the date of minting. These were struck from 1866 to 1867. The new Mexican Republic continued striking the 8 reales coin, but also began to mint coins denominated as centavos and pesos. Copper one centavo coins were issued as well as silver coins with denominations of 5, 10, 25, and 50 centavos and 1 peso were introduced from 1867 to 1869. Peso coins denominated at values of 1, 2½, 5, 10, and 20 pesos were issued in 1870, being composed of gold. The obverse of these coins featured the "eagle" of Mexico and below "Republica Mexicana". The reverses of larger denominations showed scales, while smaller denominations only displayed their values. Coins valuing one peso were issued from 1869 to 1873, at the time that 8-real coins once again started circulating. Cuponickel coins at denominations of 1, 2, and 5 centavos began issuing in 1882, but were only minted for two years. The one-peso coin was reintroduced during 1898, with the design of the Phrygian cap being carried over from the 8-real coins. 20th century .]] During 1905, a monetary reform was issued, which reduced the gold standard of the peso by 49.36% and made silver coins (with the exception of the one-peso coin) reduced to token issues. During the time, bronze 1 and 2 centavos, nickel 5 centavos, silver 10, 20, and 50 centavos, and gold 5 and 10 peso coins were issued. In 1910, a new one-peso coin was issued, the "Caballito" (horse), which is still considered one of the more appealing Mexican coins. The coin's obverse featured the official coat of arms of Mexico and the legends "Estados Unidos Mexicanos" (United States of Mexico), and "Un Peso". The reverse displayed a woman riding a horse, her hand lifted high, as well as its year of minting. These coins were minted in .903 silver from 1910 until 1914. From 1917 to 1919, gold coinage expanded to include 2, 2½, and 20 peso coins. However, circulation issues of gold coinage ceased during 1921. In 1918, the peso coins were lowered in value, bringing it into line with the silver 10, 20, and 50 centavo coins. All of these were minted in 0.800 fineness to a standard of 14.5 g to the Mexican peso. The design of the Phrygian cap, which already appeared on other silver coins, was added to the peso. Another lowering in value during 1920 reduced the fineness to 0.720 with 12 g to the peso. Ten and 20 centavo coins composed of bronze were introduced in 1919 and 1920, but coins at those denominations were also minted in silver until 1935 and 1943, relatively. In 1947, more denominations were struck in silver, with the 50 centavos and 1 peso coin in .500 fineness, and a newer 5 peso coin in .900 fineness. A portrait of Generalissimo José María Morelos appeared on the 1 peso coin, and remained on it until 1987. The silver content of this series equaled 5.4 g to the peso. A new portrait of Morelos appeared later on the 1 peso coin, with Cuauhtémoc, Tlatoani of Tenochtitlan, on the 50 centavos coin, and Miguel Hidalgo on the 5 peso coin. No reference to the silver content was made except for on the 5 pesos. During this time the 5 peso, and to a smaller extent, the 10 peso, coins were also used as vehicles for commemorative strikings. In 1955, a new 50 centavo coin composed of bronze was introduced, along with smaller 5 peso coins and a new 10 peso coin. During 1957, new 1 peso coins were issued in .100 fine silver. This series equaled 1.6 g of silver per peso. A commemorative 1 peso coin was minted in 1957 to commemorate one-hundred years since the constitution of 1857 and President Benito Juárez. These were the last silver pesos produced. The 5 peso coin now weighed 18 g and was still 0.720 silver, while the 10 peso coin weighed 28 g and was minted in 0.900 silver. coin from 1988.]] From 1960 to 1971, new coinage was introduced, consisting of brass 1 and 5 centavos, cupronickel 10, 25, and 50 centavos, 1, 5, and 10 pesos, and silver 25 pesos. In 1977, a silver 100 peso coin was issued for circulation. Smaller 5 peso coins were introduced alongside 20 and 50 pesos composed of cupronickel in 1980. From 1978 to 1982, the size of 20 centavos and higher denominations were reduced. From 1984 to 1988, base metal 100, 200, 500, 1000, and 5000 pesos were introduced. Nuevo peso As noted above, the nuevo peso ("new peso") was developed as a result of hyperinflation in Mexico. During 1993, President Carlos Salinas de Gortari removed three zeros from the old peso, making one thousand old pesos equal to one nuevo peso. The change between pesos went into effect on January 1, 1993 from January 1, 1996. During this time, people traded in the old peso notes and coins in exchange for new pesos. At the time, the word "nuevo" was removed from all the new minted currency, and anything with "nuevo" on it was removed from circulation, making the currency and notes to be denominated as just "peso" again. The government avoided confusion by making the nuevo peso almost identical in appearance to the old peso. Both currencies were circulated simultaneously, but the currency that only said "peso" was taken out of circulation. The Bank of Mexico (Banco de México) then issued new currency with different designs, also under the nuevo peso. These were followed by the current, almost identical, peso currency with the word nuevo before it. During 1993, coins of the nuevo peso (dated 1992) were issued in denominations of 5, 10, 20, and 50 centavos, 1, 2, 5, 10, 20, and 50 pesos. The centavo coins were composed of base metals; the 5 and 10 centavos were made of stainless steel while the 20 and 50 centavos were made of aluminum bronze. The peso denominations were bimetallic; the 1, 2, and 5 peso coins have aluminum bronze centers and stainless steel rings, while the 10, 20, and 50 pesos have .925 silver centers and aluminum bronze rings. In 1996, the word "nuevo" was removed from coinage. A new 10 peso coin was introduced that had a base metal center. Currently, the 20 and 50 peso coins are the only circulated coinage globally that contain silver. In 2003, the Bank of Mexico began circulating a new series of $100 coins. These coins number 32, one for each of Mexico's states as well as the Federal District. The obverse of these coins features the standard coat of arms of Mexico, while their reverses display the individual coat of arms of each state. The first states celebrated were Zacatecas, Yucatán, Veracruz, and Tlaxcala. In circulation these coins are extremely rare, but their novelty value compensates for the unease many users feel at having such a large amount of money in only one coin. Though the Bank of Mexico has encouraged users of the peso to collect full sets of the coins, issuing display folders for the purpose, the high cost has worked against them, in comparison to the similar 50 States Quarter program by the United States. Bullion versions of these are also available, with the outer ring being composed of gold, rather than aluminum bronze. Coins commonly found in circulation are at values of 50¢, $1, $2, $5, $10, and $20. The $50, 10¢, and 5¢ coins are rarely used in circulation, and are disliked by many users for having either a too low or high value. The 20 peso coin is not used as widely as the corresponding banknote. As of late 2006 and early 2007, the use of the 20 centavo coin is gradually declining. Small goods are priced at multiples of 10 centavos, but stores may choose to round total prices to 50 centavos. In Mexican supermarkets, there is a trend to ask customers to donate those cents to charities so they can round the amount up to 50 centavos or 1 peso. Coins File:Mexican 5c coin-1996.jpg|5¢ File:MXN 10c 2003.jpg|10¢ File:Mexican 20c coin-1996.jpg|20¢ File:MXN 50c 2003.jpg|50¢ File:MXN 1p 2003.jpg|$1 File:MXN 2p 2002.jpg|$2 File:MXN $5-1999.jpg|$5 File:Mexican $10 coin-1992.jpg|$10 File:Mexican $10 coin, 1996 issue.jpg|$10 File:Mexican $20 coin.jpg|$20 File:Mexican $50 coin-1992.jpg|$50 Banknotes References *